Black Money Definition

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JURISPRUDENCE OF BLACK MONEY IN INDIA -Amudha Murthy & Agila Murthy INTRODUCTION So long, there was a perception which has been created that the Government’s response to address Black Money issue has been a piecemeal and inadequate. There is no doubt that manifestation of Black Money in social, economic and political space of our lives has a debilitating effect on the institutions of governance and conduct of public policy in the country . There is no particular definition for the term Black Money, it refers to the funds earned in the black market on which the income has not been disclosed nor have the taxes on the income not been paid. This wealth may…show more content…
THE NIPFP defined “Black Income” as an aggregate of income which are taxable but not reported to the tax authorities. The offence through which Black Money has been generated is mentioned in the Schedules of the Prevention of Money Laundering, Act 2002 . The factors leading to generation of both international and domestic circulation of Black Money is because of social and administrative reasons. The political parties and the candidates require huge funds to build and sustain themselves, garner support and contest elections. The need to raise funds for election expenses paves the way for collecting and diverting huge amounts of money through illegal route. Invariably Indian corporate giants under invoice their exports and over invoice their imports from Tax heaven countries such as Singapore, Hongkong, Mauritius, UAE etc. politicians, political parties and corrupt officials of Government take bribe from Multi National Companies (MNC’s) and invest money in tax haven countries and thereby retransferring it to India whenever they require it. Such is the case of tax evasion found in Vodafone International as well as Shell Companies cases by transferring the funds to tax heaven countries. This concept of retransferring the funds from the tax heaven countries to India inturn is called as Round-tripping of Black Money. Also this Black Money is stocked in Swiss Banks. According to White Paper on Black Money in India report, published in May 2012, Swiss National Bank estimates that the total amount of deposits in all Swiss Banks, at the end of 2010 by citizens of India were INR 92.95 billion, US$ 2.1

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